Oct. 22, 2021, 3:36 p.m. EDT

TV Azteca Announces Net Revenue of Ps.2,980 Million and EBITDA of Ps.676 Million in the Second Quarter of 2021

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MEXICO CITY, July 22, 2021 /PRNewswire/ -- TV Azteca, S.A.B. de C.V. (BMV: AZTECACPO; Latibex: XTZA), one of the two largest producers of Spanish-language television programming in the world, today announced financial results for the second quarter 2021.

"Higher demand for advertising time in the company's competitive content, in the context of the recovery of economic activity indicators -- from limited levels of activity a year ago -- drove growth in sales this quarter," commented Rafael Rodríguez, CEO of TV Azteca. "Higher revenue was congruent with initiatives that generate higher efficiencies in our programming production process, which contributed to strengthening the operational and financial viability of the company in the period."

Second quarter results

Net revenue for the period was Ps.2,980 million, 60% higher the Ps.1,857 million for the same quarter of last year. Total costs and expenses increased 34% to Ps.2,304 million, from Ps.1,714 million for the previous year.

As a result, the company reported EBITDA of Ps.676 million, compared to Ps.142 million a year ago. TV Azteca reported operating income of Ps.485 million, from an operating loss of Ps.112 million in the previous year.

The company recorded a net income of Ps.283 million, compared to a net loss of Ps.707 million in the same period of 2020.









Figures in millions of pesos.

EBITDA: Earnings Before Interest, Taxes, Depreciation and Amortization.

The number of CPOs outstanding as of June 30, 2020 was 2,984 million and as of June 30, 2021 was 2,986 million.

Net sales

Advertising sales for the company in Mexico increased 66% to Ps.2,810 million, from Ps.1,694 million the previous year, in the context of better performing economic aggretates compared to the previous year.

The sum of revenue of TV Azteca Guatemala and TV Azteca Honduras, as well as the company's content sales outside of Mexico, was Ps.66 million, compared to Ps.50 million the previous year.

Azteca Comunicaciones Perú reported revenue of Ps.104 million from Ps.113 million a year ago. The revenue resulted from telecommunications services and reimbursements from the Peruvian government for maintenance and operation of the fiber optic network.

Costs and SG&A Expenses

Total costs and expenses increased 34% in the quarter as a result of a 29% growth in production, programming and transmission and telecommunications services costs -- to Ps.2,085 million, from Ps.1,612 million a year ago --together with a 114% increase in selling and administrative expenses, to Ps.219 million, compared to Ps.103 million from the previous year.

The increase in costs, which was lower than the revenue growth this period, reflects strategies that strengthen efficienices in the content production process, which preserve the operational viability of the company, while maintaining the superior quality of the programming.

The costs of Azteca Comunicaciones Perú were Ps.82 million, from Ps.85 million a year ago. The reduction is mainly due to lower costs for the maintenance of the transmission infrastructure.

The increase in selling and administrative expenses reflects fees related to financial advisory services in the period, partially offset by lower operating and personnel expenses.

EBITDA and net results

The company's EBITDA was Ps.676 million, compared to Ps.142 million in the same period of the previous year. TV Azteca reported operating income of Ps.485 million, from an operating loss of Ps.112 million a year ago.

Significant variations below EBITDA were the following:

A Ps.79 million reduction in paid interests, as a result of a lower balance of debt with cost in the company, as well as a lower average exchange rate during the first half of this year, compared to 2020.

A Ps.78 million decrease in other financial expenses, derived from the sale of the company's investment portfolio a year ago.

A Ps.72 million increase in foreign exchange gain, as a consequence of the net monetary liability position in dollars, together with a greater appreciation of the exchange rate of the peso against the dollar this quarter compared to the previous year.

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